Atlanta Real Estate Blog

Waiting for the Bottom - You May Have Missed It

Smelling the flowers?Waiting around and smelling the flowers? If you are one of the many buyers waiting for the bottom, it's quite possible that you have missed it. Waiting on a "bottom" is a terrible homebuying strategy anyway, but, now is really the time to get off the fence. We as real estate professionals are not capable of exactly calling the bottom and that means that you as consumers have no chance of doing so. Think I'm wrong? We now have had four consecutive months where the average price of homes for sale in Atlanta is higher than the previous month. In February it $172,860. Now it's $209,999 or over $37,000 higher than the low! Translated, this means since February, prices have gone up every month so many areas the "price bottom" may be behind us. The confluence of low prices, high inventory and low interest rates presents itself as a window subject to close much faster than it opens so if you are going to move, you should know - it looks like the window is closing.

It's time to change what we call this. It's no longer a bad market or a good market. It's the new normal. For the next year to a year and a half, inventories will still be high and we will go through periods that see modest price declines but it will be hyperlocal, market and price point specific. The main reason is that loan qualifying has been constricted to shrink the sales volume, but, it looks like the market may be reaching a tipping point with inventory as it relates to sales volume. Next month (July) we are more than likely going to see resale home sales surpass those sales of 2008 based on pending sales now compared with pending sales at this time last year. That means the supply of homes is going to be heading down. With...

Homes for Sale in Crooked Creek - A Market Update

Crooked Creek Golf CourseCrooked Creek is a fantastic golf and country club community located in Milton undergoing something of an unusual change for a neighborhood in the real estate market today. A robust $4,000,000 renovation to the facilities is being undertaken in a real estate market that has just taken a beating over the past few years.  With homes dating to the mid nineties, many people believed that these updates may do the community well and freshen up the general appearance. This may still happen, but, construction is behind schedule and we'll really have to wait another year to see if that plays out. Until then, here is an update on market statistics. Faced with lots of competition in the zip code for similarly priced homes, staging, marketing and price ring true as the most important factors to get  home sold in the neighborhood and not listing your home for sale with an agent who "knows" or "lives in" the neighborhood. Those old myths never actually helped sell houses and do even less in a compressed real estate market.

There are currently 44 homes for sale in Crooked Creek as well as at least one additional home for sale by owner. Four of these are under contract. One of the under contract homes is in The Enclave. Four more of the active homes are in The Enclave. That leaves Crooked Creek proper with 36 active listings and 3 under contract or 1 in 12. A strong market (one that is good for sellers) would have 1 in 3 or 1 in 4 homes under contract at the high point of the selling season. In the last 3 months there have been 7 sales for an average sales rate of 2.33 per month. This makes the absorption rate in Crooked Creek 15.5 which means that there...

Home Sales in Atlanta Down, Pending Sales Up

StatisticsIn March, I wrote about what I thought was going to happen this summer and moving forward in the Atlanta market. It does appear that what I thought might happen is actually beginning to take place and that is good news for a real estate market that is in desperate need of something positive and tangible to hold onto. Many of you may have read reports earlier this year in the AJC indicating price increases in certain areas of the city, but, they failed to place the fine print in an easily readable place in the article and the realities are that those reports are not very accurate. Fortunately, this report is very accurate as we won’t neglect to include foreclosures and other necessary parts of the equation that make up today’s market.

First, the actual number of homes for sale in Atlanta is down considerably from the same time period (May) of last year. Last year, there were 69,638 homes for sale. This year there are a full 16,000 less homes for sale at 53,081. That’s a full 23% drop in inventory and if you have read anything I have written, you know that lowering inventory must happen before prices can stabilize. Let's not get ahead of ourselves and talk about increasing prices just yet. Let’s just work towards stable because no sooner will we say stable than we will be talking about increasing prices – we are not there yet. This is still going to take a while and there is still at least one more very large shoe to drop with foreclosures entering the market in the largest numbers we’ve seen to date. We’ll see if the banks can push them out as fast as the rumors say they will.

Second, the forward looking activity index of pending sales finally shows more pending sales than we had during the same time period (May again) of 2008 – barely - but, up...